Course description:

International financial management addresses the complexities of managing financial resources in a globalized economy. It explores topics such as foreign exchange markets, international trade financing, risk management strategies, global capital budgeting, and cross-border investment decisions. By examining the impact of international economic policies, exchange rate fluctuations, and geopolitical risks, this discipline equips individuals and businesses with the tools to navigate the challenges of operating in global markets.

While much of international financial theory and practice has traditionally focused on large multinational corporations, small and medium enterprises (SMEs) face unique challenges and opportunities in the global arena. Limited access to capital, resource constraints, and heightened exposure to currency and political risks often shape the financial decisions of SMEs. At the same time, SMEs are increasingly engaging in cross-border trade, leveraging international partnerships, and exploring foreign markets to scale their businesses. This course emphasizes the need to adapt financial strategies to the specific needs of SMEs, providing practical tools and insights to help these enterprises thrive in an international context. By recognizing and addressing these particularities, this course aims to empower SMEs to make informed and strategic financial decisions in an ever-evolving global economy.

During the course, students

• ·        Explain key corporate finance principles and adapt them to the specific challenges and practices of small and medium enterprises (SMEs).
• ·        Use fundamental financial tools, such as financial ratios and cash flow analysis.
• ·        Evaluate cross-border investment opportunities by incorporating key principles of international capital budgeting, such as exchange rate impacts, risk assessment, and cost of capital.
• ·        Identify types of foreign exchange exposures faced by SMEs (transaction, translation, and economic exposure) and develop practical strategies to manage them effectively.
• ·        Utilize hedging instruments such as forward contracts, options, and swaps to mitigate exchange rate risks in SME operations and international transactions.
• ·        Understand the mechanisms of trade and export finance, including letters of credit, factoring, and export credit insurance.
• ·        Apply advanced financial concepts such as real options, valuation techniques, and project finance to support strategic decisions, alliances, mergers, and acquisitions for SMEs.
• ·        Integrate strategic finance tools with international finance knowledge to create tailored financial strategies that align with the goals and constraints of SMEs.

Attendance in all classes is mandatory.

This course is designed as a modular online (6198 ) and face-to-face (61989) course. The online unit is taught entirely via MS Teams. Students may switch individual units between online and face-to-face course with the permission of the instructor. In both the online and the face-to-face course are expected to complete ALL weekly learning components:

·        Collaborative pre-session mandatory readings,

·        Online assignments and learning extensions (videos & podcasts), and

·        Recorded lecture casts and/or podcasts (asynchronous)

·        Final written exam

·        Final exam (individual)                        70% (min 50% for positive grade)

·        Online exercises & quizzes                   30%

·        In-class participation                            10% (curve graded bonus points)

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Basic Finance Knowledge